Cost of Solar Panels in Colorado: Best Solar Companies, Cost and Installation

Solar is a complicated decision and OhmHome has compiled this guide to Colorado solar with the cost of solar panels in Colorado and advice on how to estimate cost and savings, navigate state and federal incentives, and find the best solar companies in Colorado.

Solar Trends in Colorado

Colorado solar permits declined 32% to 165 in June from 245 in June 2016 and increased 3% from May 2017 (YTD decline of 9%)

Cost of Solar Panels in Colorado

The cost of solar has dropped significantly in recent years due to the increase in module supplies and other supply chain efficiency improvements. According to the U.S. Department of Energy’s Q4-16 Sunshot report, the median price of residential solar in major markets was $4.20 per watt with the lowest 20% at approximately $3.50 per watt.

Solar Incentives in Colorado

Colorado does not offer a state incentive for homeowners going solar, but several utilities and local organizations do.

Colorado Utility Solar Incentives vary by utility and it is best to reference the DSIRE database to learn about specifics in your area.

Federal Solar Tax Incentives

The IRS offers a 30% tax credit for solar systems based on the cost after state rebates and credits (discussed above). It is important to note that that federal tax credit only applies to purchased systems and you need sufficient tax liability to claim the credit. The federal solar tax credit was set to expire in 2016, but was recently extended through 2019, at which point it will start to decrease to 10% by 2022. The IRS form 5695, Residential Energy Credits can be found here.

Solar Financing in Colorado

The number of solar financing options has expanded significantly in recent years to includes a number of low-interest rate loans, as well as power purchase agreements or solar leases. To learn more, refer to our lease or buy solar guide.